Matcha Tea Market Analysis Report By Product, By Grade, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619547  |  Published: April 2020  |  No of Pages: 80
Format: Electronic (PDF)  |  Industry: Consumer Goods

Industry Insights

The global matcha tea market size was USD 1.63 billion, in 2018 and is expected to grow with a CAGR of 4.7% during the forecast period, 2019 to 2025. Matcha tea is expected to see high growth, owing to the rising demand for nutrition-rich beverages and the increasing inclination of consumers towards a healthy lifestyle. Moreover, continuous product innovation and new launches of products by the manufacturers are expected to drive the demand for market growth in the coming years.

Matcha is a quality green tea that is extracted from tencha leaves, which are then crumpled into a fine powder. Moreover, it is a key ingredient in Japanese tea gatherings and extremely beneficial for health. Furthermore, its distinct taste and rising applications in sweet and savory recipes along with macarons, cocktails, cakes, lattes, salad dressings and doughnuts, and are anticipated to significantly contribute to the growth of the market.

North America matcha tea market

Matcha tea is gaining popularity due to its numerous health benefits, which will help the market to grow in the coming years. Matcha tea improves focus, calmness, and concentration as well as enhances natural detoxification gastrointestinal functioning, immune system, metabolism, and inhibition of cancer cells. This is anticipated to fuel the demand for market growth during the forecast period, 2019 to 2025. Additionally, due to its high antioxidant content, it has also gained popularity in the beauty sector, which is anticipated to create a huge opportunity for the market in the future.

Further, rising demand for organic, natural, and nutrient-rich products is likely to have a positive impact on market growth. Moreover, the increasing demand for healthy beverages, containing vitamins and antioxidants and the rising inclination of consumers towards a healthy lifestyle is projected to fuel the demand for the market. With the rising disposable income, the purchasing power of the consumers also increases and encouraged them to consume healthier beverages.

Product Insights

Based on product, the market is segmented into powder, RTD beverage, and instant premixes. The powder segment has accounted for the largest market share, in 2018, owing to rising awareness of health benefits and the high presence of nutrients. Additionally, smooth texture, clean taste, and good flavors are gaining traction among customers, which is expected to fuel the demand for the market during the forecast period, 2019 to 2025. Moreover, manufactures are continuously investing in product development to develop matcha tea through experimenting with new flavors and ingredients to gain a competitive advantage over their competitors. Moreover, powdered tea contains anti-oxidants that protect from harmful UV emissions and reduce the occurrence of chronic diseases. The product contains Epigallocatechin Gallate (EGCG) constituent which can prevent bladder, cervix, prostate, and brain cancer. Additionally, continuous product innovation in the food & beverage industry is expected to significantly contribute to the growth of the matcha tea market. For example, Aktienbrauerei Kaufbeuren (ABK Beer) has introduced a new product of Matcha Green Lager Beer Mix in 2018.

The instant premixes segment is anticipated to grow with the fastest CAGR during the forecast period, 2019 to 2025. The segment is anticipated to witness significant growth, owing to rising product innovation and changing preferences of the consumers towards nutrients-rich products. Moreover, premixes are usually used for preparing ice drinks, lattes, ice creams, smoothies, and milkshakes. Additionally, with the rising product development, it is now also used in alcoholic beverages such as beers, vodka, whiskey, and rum. For example, PANATEA, LLC., has launched an Instant Matcha mixture, in 2016, which can instantly melt in cold and hot water. Furthermore, in 2017 company comes with a product known as Glow, which is purposely designed for a single-serve matcha latte and now it is available in flavors such as vanilla which is made from oat-milk dust.

Grade Insights

Based on the grade, the market has been bifurcated into classic, ceremonial and culinary. In 2018, the classic segment holds more than 56% of the market share in the grading segment, owing to the rising number of tea drinkers and increasing consumption of healthy tea beverages. The classic grade can be easily mixed with a wide range of food & beverages, which is anticipated to fuel the segment growth. Moreover, it is widely used in smoothies, shakes, and milk-based beverages. Due to all these factors, it is expected to augment the demand for the segment.

Global matcha tea market share, by Grade, 2018 (%)

Culinary grade is anticipated to witness significant growth during the forecast period, 2019 to 2025, this growth is attributed to the rising adoption of grades in food & beverages recipes. Culinary grade has a smooth texture, clean taste, and high nutrient content. This is drawing the attention of the consumers to choose matcha tea over conventional tea, thus expected to drive the demand over the forecast period. Additionally, the growing application of culinary grade in smoothies, lattes, desserts, and green tea-based baked products are anticipated to further fuel the segment growth. Furthermore, some of the key driving factors are premium taste, unique flavor, and economic price.

Regional Insights

Based on the region, the market is divided into North America, Asia Pacific, Europe, Middle East, and Africa, and Central and South America. The North American region is expected to see the fastest growth over the forecast period, 2019 to 2025. This revenue growth is attributed to high growth opportunities in developing countries, like Brazil, India, and China.

The North American market is expected to grow with the fastest CAGR during the forecast period from 2019 to 2025. Growing demand for nutrient-rich tea products and rising health awareness are expected to significantly contribute to the growth of the market. Additionally, the rising penetration of Chinese and Japanese products through grocery retail chains is expected to fuel the demand for market growth. Furthermore, the growing popularity and availability of the products in cafes and restaurants are anticipated to significantly contribute to the growth of the market.

The Asia Pacific has held the largest market share, in 2018. The region is anticipated to witness significant growth, owing to the rising number of tea drinkers, strong presence of established players and product innovation are the key driving factors for the market growth. Moreover, counties such as India, Australia, and Singapore are anticipated to see significant growth during the forecast period, 2019 to 2025, owing to rising health awareness and population growth. Furthermore, a sufficient supply of raw materials and the presence of skilled laborers are expected to support the growth of the market.

COVID-19 Impact Insights

The matcha tea market has been positively impacted by the COVID-19 outbreak, owing to the shifting preference of consumers towards healthy foods & beverages amid lockdown. Further, due to lockdown people are suffering from various problems such as hypertension, high blood pressure, anxiety, and various other complicacies. The matcha tea helps in improving concentration, focus, and calmness, which is essential for remaining mentally stable & fit during the lockdown. Moreover, it also improves metabolism, immune system, natural detoxification, and gastrointestinal functioning.

Matcha Tea Market Share Insights

Some of the key players operating in the market are The Tata Global Beverages Ltd.; Unilever; AOI Tea Company; Nestlé; Marukyu-Koyamaen; Encha; ITO EN, LTD.; Tenzo Tea, Inc.; Green Foods Corporation and aiya-THE TEA. These companies have implemented numerous competitive strategies such as merger & acquisition, application & technological advances, and capacity expansion, which help them to capture the larger market share.

For instance, Matcha Works has launched a new product ‘Sparkling Matcha’, in March 2019. It is an energy drink based on matcha tea and is available in various flavors such as watermelon, Straight Up and Lime, and lemon. Furthermore, ITO EN, LTD., has launched a premium flavors Matcha Tea Bags, which are available in peppermint, apple, and ginger flavors.

Report Scope



The base year for estimation


Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage        

Revenue forecast, company share, competitive landscape, growth factors, and trends

Country Scope

U.S., UK, Germany, China, Japan, India, Brazil, South Africa

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global matcha tea market report based on product, grade, and region:

• Matcha Tea Product Outlook (Revenue, USD Billion, 2015 - 2025)
    • Powder
    • RTD Beverage
    • Instant Premixes

• Matcha Tea Grade Outlook (Revenue, USD Billion, 2015 - 2025)
    • Classic
    • Ceremonial
    • Culinary

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • India
        • China
        • Japan
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa

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